Am I on the right track??

Almost every type of exchange of value needs knowledge and expertise. Bullion companies probably have many times the knowledge, insider information, and lobbyists, and they opt to sell to an less knowledgeable investor with no qualms as long as it is at their price. If there was a good chance silver would be $50 by the first of the year, do you think they would sell it to you now at approx. $28 ? Yeah, because "we" all know it will go up even if we don't know much beyond it is "purty" , "everybody says the economy is just a few minutes from world collapse", etc.

It doesn't matter if it is art, stocks, commodities, forex, real estate, etc. IF one doesn't have the knowledge, accurate information , rather than hearsay, they will lose money. IMO.

Jim

 

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A big +1 Jim,

I think we should ALL re-read your post about 10 times

Mike

 

I know many of those experts, and they seem to be as clueless as the rest of us. They make the bulk of our donors. Just look at their track record. You should have seen the Bear Sterns people a week before the collapse. They were in utter panic.

 

Welcome to CoinTalk! I only collect for pleasure but I hear good things about silver. If you like coins and making money, you might want to try searching bank rolls for silver.

 

Eventually.

 

I like junk silver and War Nickels a lot. 10 oz bars are a favorite of mine simply because $300 is easier to put together than 3,000 for a 100 oz. bar. I like how the 10oz handel better than 1 oz and 100 oz also.

Bags of junk quarters are likely my favorite after Peace and Morgans. Peace dollars were some of my first silver purchases after getting back in (after my original hoard was stolen).

Welcome.

Try to find the Introduction section threads. You might get a few bites there. You can write up another story for folks to enjoy reading, and do mention this post in the Bullion section.

Again Welcome.

Oh about prem for the pretty animals and special series, these coins are often from very limited mint runs, so down the road, the prem. you dish out now maynot seem so bad.

I collect the one oz. Kookuburros from the Perthe Mint. I also collect any size bar and any metal of the Pamp Swiss - Lady with blindfold and cornacopia. The gold First Spouses are a favorite too, but I became way behind on these ladies due to a thinner wallet.

I like silver a lot so I pass on hair cuts, new clothing, and stuff like that. Other than art supplies and materials, my only vice these days is Precious Metals, and a new gun once in awhile. I don't drink or smoke anymore either. This helps a lot!

 

The difference with gold and silver is that they are money. You can't lose money by trading paper currency which does meet the 4 requirements of a unit of account (divisible, durable, fungible, portable) in exchange for real money (metals which are all of these things, and no other thing in existence is). It's one thing to invest and hope for a profit in paper currency. If that is the goal then metals may not be the right choice, but if the goal is to save money, there is no better choice.

 

That is just plain incorrect, it is not opinion, there is nothing to argue, it is just wrong. When a county switches to full fiat money, things like gold and silver become commodities, nothing more. The fact that they were once money or they have some of the characteristics of money, has nothing to do with the price of tea in China. They are no closer to bring money than pork bellies.

You may not like it but that is the way it is. You might be able to argue the advantages of silver and gold being money, but the fact that advantages may exist does not make the PM's money either.

The only thing that is money, is what the government says is money.

Mike

 

Any dictionary definition of gold or silver supports my statement and you are in fact wrong on this one. More languages than I can count that use the same word for silver as money interchangeably as well. Money and currency are not the same thing. It's a common misconception which is why I am attempting to point it out in the first place. You may want to look up the Coinage Act of 1792 for historical context. Try pulling a dollar out of your pocket. Do you see the word 'money' on it? No, it is a 'Federal Reserve Note', paper currency, but it is not money by definition as I've stated regarding what constitutes a Unit of Account.

http://en.wikipedia.org/wiki/Money#Unit_of_account

 

I will just use the doc you provided this is the very first line:



Money is any object or record that is generally accepted as payment for goods and services and repayment of debts in a given socio-economic context or country.[SUP][1][/SUP][SUP][2][/SUP][SUP][3][/SUP] The main functions of money are distinguished as: a medium of exchange; a unit of account; a store of value; and, occasionally in the past, a standard of deferred payment.[SUP][4][/SUP][SUP][5][/SUP] Any kind of object or secure verifiable record that fulfills these functions CAN serve as money.


That word CAN makes all the difference in the world. Just because something CAN serve as money does not mean it does.

The other words of importance are generally accepted. Just try going to your WAWA, get a slurpee and pluncking down an ASE and expecting $25 back in change. It is just not going to happen.


Here is another line directly from your article:

Modern day monetary systems are based on fiat money and are no longer tied to the value of gold
No explaination needed here

Now look at this:


Commodity money value comes from the commodity out of which it is made. The commodity itself constitutes the money, and the money is the commodity

This is when gold and silver used to be money. Problem is this


Currently, most modern monetary systems are based on fiat money. However, for most of history, almost all money was commodity money, such as gold and silver coins. As economies developed, commodity money was eventually replaced by representative money, such as the gold standard, as traders found the physical transportation of gold and silver burdensome. Fiat currencies gradually took over in the last hundred years

See where we are at. We have fiat money, there USED to be commodity money, but that was REPLACED by representative money, which Fiat currencies took over. So from the same article the definition of fiat money:


Fiat money or fiat currency is money whose value is not derived from any intrinsic value or guarantee that it can be converted into a valuable commodity (such as gold). Instead, it has value only by government order (fiat).

So like I said, you may not like it, but that is where we are at. We have fiat money, which has no ties back to gold or silver and that same fiat money is the only money that is recognized as Legal Tender in the US. Gold and Silver are commodities, that is all


Every word of this came from the "proof" you provided.

 

It's odd that everything you stated backs his argument as well. It's all about perspective.

 

Hello Peace,
This really has nothing to do with perspective, just facts. Silver used to be money, silver has some of the charactersitics of money, it even has some advantages for being money. But that does not make it money.
No one argues that we have now swithced to be 100% fiat money, and the very definition of fiat money is that it is not backed up by anything except a government promise. That fiat money (GreenBacks) is the only thing that is legal tender in the US. Nothing else, NOTHING. Some people don't feel comfortable with that, but that is what it is. You cannot make something into money because it gives you a warm fuzzy. Read the entire WIKI post with a clean and open mind, and I think you would agree.

Also, if anybody is receiving goods in exchange for silver, they are bartering, not using silver as money


Mike

 

Looool bullion companies with insider information and lobbyists? You do realize many of these bullion companies where happily selling at $4-5 an oz right? that alone completely debunks your theory. The bullion companies have no idea if silver is going to $50 an oz by the first of the year, if they did they would just get rich making leveraged trades and wouldn't bother selling bullion.

Bullion companies make money on their buy/sell spread, bullion companies make money on their buy/sell spread, bullion companies make money on their buy/sell spread.

 

silver, gold and copper are money.

 

Hey fellows, the original poster is brand spankin new. Go easy!

I would say that the OP is on the right track. He has a 401K, does not want more stocks, likes pretty coins over bullion bars. Sounds simple enough.

 

Please provide some proof or at least your thought process on that.

Mike

 

You are being kind. It is not "Most" , it is ALL!!! I have many times asked people to name any country, state within, or city , using PM or even seashells for commercial monetary use.

 

The states of Washington and Utah have laws stating that silver and gold can be used as money.

 

Just covering my bases in case I missed one BTW, club MED still uses beads